Comments
Car rental firms are taking cues from airlines as part of an exercise to retain customers and differentiate their services in an arena with intense competition.
Over the next 2-4 months, firms such as Meru Cabs, Ola Cabs, TABcab, Savaari and Myles (part of Carzonrent) are set to launch frequent user programmes, similar to those run by airlines.
Members will get benefits such as priority dispatch, special discount packages, cash back on online bookings and referral discounts.
Siddhartha Pahwa, CEO of Meru Cabs, India’s largest fleet cabs provider, said the company aims to launch what will be the country’s first frequent user programme for radio taxis by the first week of April.
“With our programme, regular customers can accumulate miles which can be redeemed either on our network or with that of our partners. Frequent users will also get discounts,” he said.
Miles redemption Mumbai-based TABcab has christened its initiative, which is still in the works, ‘TabMiles’. Tests are under way to ensure that customers can redeem usage miles online and digitally, and through its contact centre, said Prasenjit Bagchi, Chief Marketing Officer of SMS Taxicabs, which operates the service.
The multi-billion dollar market for radio taxis in India is growing at a compounded rate of 25 per cent a year.
Last year, Google Ventures-backed Uber ventured into India with Bangalore and Hyderabad as its first entry points. The US-based company, which specialises in luxury taxis with the added advantage of cashless transactions, is expected to spread its wings rapidly in the coming years.
With new entrants in this space, existing players feel the need to pull out all stops and enhance user experience.
New-Delhi based Carzonrent is all set to unveil a frequent user programme for Myles, its self-drive service.
In addition to miles accumulation, it will provide its ‘club’ members with access to high-end cars and passes for various events conducted by the company, said Sakshi Vij, Executive Director.
Savaari.com, a car rental start-up, is about a ‘quarter or two away’ from launching its frequent user plan, said co-founder Gaurav Aggarwal, adding that the push for such programmes is coming from customers themselves.
A spokesperson for Ola Cabs, which recently launched its luxury point-to-point service, said the company’s model will be different from what airlines offer.
Different model Most frequent flyer schemes reward travellers with a specific number of points based on the distance travelled.
“A customer in Mumbai who uses our luxury service may not clock as many kilometres. He would still be more premium in terms of his/ her attachment to Ola compared to a regular user who may clock more kilometres.
“Hence, it is necessary to structure the frequent user programme not only around the quantum of kilometres billed but in a way that users across categories can benefit,” the spokesperson said.
Some of the players, such as Savaari and Ola Cabs, do not own cars but work with a range of partners/operators.
> adith.charlie@thehindu.co.in
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.